(a) Base Tax and Additional Tax. Subject to the provisions of Section 197.16, in order to provide funds for the purpose of general Municipal operations, maintenance, new equipment, extension and enlargement of Municipal services and facilities of the City, there shall be imposed on and after January 1, 1979, an annual tax at the rate of one and one-quarter percent (1.25%) per annum (hereinafter referred to as the “Base Tax”), and in order to provide funds for the payment of debt service on bonds, notes, loans or other obligations issued or incurred by the City before January 1, 2004, to provide for the payment of costs of capital improvements to the water system of the City and the fire station of the City and for the payment of debt service on bonds, notes, loans or other obligations, there shall also be imposed on and after July 1, 2003 through June 30, 2007, an annual tax in addition to the Base Tax at the rate of one-quarter of one percent (0.25%) per annum (hereinafter referred to as the “Additional Tax”); and in order to provide funds for the hiring of additional personnel in the Police Department of the City, there shall also be imposed on and after October 1, 2007 through September 30, 2012, an annual tax in addition to the Base Rate and the Additional Tax, at the rate of one-eighth of one percent (1/8%) per annum (hereinafter referred to as the “Second Additional Tax”), upon the following:
(1) On all salaries, wages, commissions and other compensation earned or received during the effective period of this chapter by residents of the City;
(2) On all lottery winnings equal to or exceeding two thousand dollars ($2,000.00) per prize or award won during the effective period of this chapter by residents of the City;
(3) On all salaries, wages, commissions and other compensation earned or received during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City;
(4) On the portion attributable to the City of the net profits earned or received during the effective period of this chapter of all resident unincorporated businesses, pass-through entities, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City;
(5) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity or pass-through entity not attributable to the City and not levied against such unincorporated business entity or pass-through entity;
(6) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City;
(7) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a nonresident unincorporated business entity or pass-through entity not attributable to the City and not levied against such unincorporated business entity;
(8) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done, services performed or conducted in Willard, whether or not such corporations have an office or place of business in Willard; and
(9) On a resident’s distributive share of the net profits of a Subchapter S corporation in which the resident is a shareholder.
(b) Apportionment of Net Profits. The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of Willard shall be determined as provided in Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(c) Operating Loss Carry-Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to the effective date of “first” ordinance permitting loss carry-forwards allocable to Willard may be applied against the portion of the profit of succeeding year(s) allocable to Willard until exhausted, but in no event for more than one taxable year immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of a net operating loss sustained shall be allocated to Willard in the same manner as provided herein for allocating net profits to Willard.
(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.
(d) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within Willard constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to Willard. If the Administrator finds net profits are not properly allocated to Willard by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to Willard.
(e) Exception. The tax provided for herein shall not be levied upon the military pay or allowances of members of the Armed Forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Ohio R.C. 718.01 to the extent that such net profits are exempted from municipal income taxes under such section, or under the municipal taxable income earned by individuals under 18 years of age.
(Ord. 4773. Passed 11-15-99; Ord. 5000. Passed 2-4-03; Ord. 5098. Passed 3-15-04; Ord. 5107. Passed 11-2-04; Ord. 5218. Passed 5-8-07; Ord. 5231. Passed 6-18-07; Ord. 5271. Passed 5-5-08; Ord. 5605. Passed 11-12-15.)